The Code consists of four books, the latter regulates the order of bankruptcy of the physical entities.
The borrower who is in a difficult material situation can initiate its bankruptcy. The creditor cannot afford that.
the following reasons for opening a case on insolvency are provided:
- expired commitments in the amount of over 30 minimum salaries;
- the debtor does not pay at least half of his debts within two months;
- there is a decision in the enforcement proceeding which says that a person does not possess a property which might be collected;
- other circumstances which confirm that the debtor will not be able to perform his commitments in the nearest future.
In this case, the debtor will receive a plan of restructuring the loan; if the compromise with the bank is not reached, the property of the obligor will be sold to cover the commitments. Almost any property can be put for sale, except "the only housing of debtor" - apartments up to 60 square meters or a house to 120 square meters, as well as money in retirement accounts and in social insurance funds.
One can not recognize himself a bankrupt within five years since such decision was made( the exception is repayment of previous obligations ). During this time, the borrower has to notify in writing the other party about the fact of bankruptcy before taking money in debt, on credit or becoming someone else’s bondsman.
A person cannot have a perfect reputation within three years after he was recognized a bankrupt.